The Reserve Bank of New Zealand (RBNZ) today delivered another 0.5% rate hike, lifting the official cash rate to 4.75%:In delivering its decision, the RBNZ noted that “the OCR still needs to increase… to ensure inflation returns to within its target range over the medium term”. “While there are early signs of price pressure easing, core consumer price inflation remains too high, employment is still beyond its maximum sustainable level, and near-term inflation expectations remain elevated”. “Labour shortages remain a significant constraint on economic activity, contributing to heightened wage inflation. People are moving jobs at an elevated pace, consistent with labour shortages and strong demand”, the RBNZ added. “While there are early signs of demand easing it continues to outpace supply, as reflected in strong domestic inflation”.

Source: Stuff February 22, 2023 07:02 UTC